Bill Barrett Sells $335M of Natural Gas Assets
Bill Barrett Corporation (NYSE: BBG) announced today that it has signed a purchase and sale agreement with an affiliate of Vanguard Natural Resources, LLC for the sale of certain of the Company's non-core natural gas assets including all Wind River Basin natural gas producing properties, the Powder River Basin coal bed methane ("CBM") assets and a working interest in its Gibson Gulch-Piceance Basin development property. Total consideration, prior to customary closing adjustments, is $335.0 million and the transaction is expected to close by December 31, 2012.
Chairman, CEO and President Fred Barrett comments: "We are very pleased to execute this transaction with an affiliate of Vanguard Natural Resources, a step that is very closely aligned with our long-term objectives. I would like to emphasize two key points leading to this transaction. One, the monetization of non-core, lower growth assets is part of a prudent long-term strategy to optimize our portfolio and focus investment dollars in programs that offer the highest returns and best long-term growth profile. Two, based on our allocations, this transaction pegs the pre-sale market value of our Gibson Gulch asset at approximately $1 billion, which I believe has not been